The first (and only) Wal-Mart store in India is located about 500 kilometers north of New Delhi, on the Grand Trunk Road near the Holy city of Amritsar that Rudyard Kipling spoke of nearly a century ago.
Interestingly, to deflect the attention of politicians and activists who oppose the entry of foreign multi-brand retailers, the store isn’t called Wal-Mart. After many surveys and much research, it was named Best Price Modern Wholesale.
The endeavor is a joint venture between Bharti Enterprises and Wal-Mart. Bharti owns the largest mobile phone GSM service in India. Until this stores opening, Wal-Mart's retail presence has been limited to providing retail items to their partner Bharti’s chain of 25 Easy Day grocery stores that opened last year.
This store however, is not a standard Wal-Mart such as the ones you see in North America. India has legislation that prohibits foreign companies from having direct competition with the domestic retailers and allows only limited foreign ownership as well. This store is not a retail store that will compete with other local retailers. This store is a cash-and-carry wholesaler that will mostly sell to vegetable vendors, hospitals, hotels, restaurants and other companies.
In order to buy from this store, you must be a business owner, a business owner’s family, or one of three of the business owners’ friends. This was a requirement that was meant to appease the local shop owners who saw the Hyper store as a threat to their businesses.
Wal-Mart has had ties with India for some time. Indian suppliers have been providing cloth, clothing, home products and jewelry for the last two decades. They’ve also been working for the 3 years before opening behind the scenes to develop additional suppliers. These new suppliers will help them stock the shelves of their new store in Amritsar with fresh produce and staples like lentils, wheat and rice. One of their stated goals is to provide localized store brands that will sell for 20-30% less than the leading brands, while being customized with taste, style or size for the local area.
Raj Jain (president of Bharti-Wal-Mart) claims that… “We’ll be able to deliver a different seasoning for noodles every 100 km - all with an appreciation for variations in local cultures and tastes.” “India is not a homogeneous market, so ours is not a cookie-cutter approach from the U.S."
Interestingly, to deflect the attention of politicians and activists who oppose the entry of foreign multi-brand retailers, the store isn’t called Wal-Mart. After many surveys and much research, it was named Best Price Modern Wholesale.
The endeavor is a joint venture between Bharti Enterprises and Wal-Mart. Bharti owns the largest mobile phone GSM service in India. Until this stores opening, Wal-Mart's retail presence has been limited to providing retail items to their partner Bharti’s chain of 25 Easy Day grocery stores that opened last year.
This store however, is not a standard Wal-Mart such as the ones you see in North America. India has legislation that prohibits foreign companies from having direct competition with the domestic retailers and allows only limited foreign ownership as well. This store is not a retail store that will compete with other local retailers. This store is a cash-and-carry wholesaler that will mostly sell to vegetable vendors, hospitals, hotels, restaurants and other companies.
In order to buy from this store, you must be a business owner, a business owner’s family, or one of three of the business owners’ friends. This was a requirement that was meant to appease the local shop owners who saw the Hyper store as a threat to their businesses.
Wal-Mart has had ties with India for some time. Indian suppliers have been providing cloth, clothing, home products and jewelry for the last two decades. They’ve also been working for the 3 years before opening behind the scenes to develop additional suppliers. These new suppliers will help them stock the shelves of their new store in Amritsar with fresh produce and staples like lentils, wheat and rice. One of their stated goals is to provide localized store brands that will sell for 20-30% less than the leading brands, while being customized with taste, style or size for the local area.
Raj Jain (president of Bharti-Wal-Mart) claims that… “We’ll be able to deliver a different seasoning for noodles every 100 km - all with an appreciation for variations in local cultures and tastes.” “India is not a homogeneous market, so ours is not a cookie-cutter approach from the U.S."
Table 1 Comparison Demographics between India, Germany and S. Korea
